Point Pleasant NJ (July 19 2019) Hurricane Barry hit the Louisiana Coast on July 13, shutting down businesses, tearing roofs from homes, flooding streets and caused the halt of Oil Production across the Gulf of Mexico. Even as the country’s first hurricane of the year diminished in power and was downgraded to a tropical storm, it continued to cause havoc. Levees were overwhelmed, roads and bridges closed, and residents lost power.

“A lot of these storms are not only more frequent, but also slower moving,” said Brad Turner, National Flood Product Manager, Burns & Wilcox, Morehead City, North Carolina. “They are bringing in more rainfall totals than we have ever seen before, in very concentrated areas.”

“Flood damage is the number one under-insured cause of property damage across the United States, with over half of the losses in 2018 being uninsured.”— Brad Turner, Burns & Wilcox

“The NFIP is limited to $250,000 for a dwelling, where the private market can write up to $5 million on a Private Flood Insurance policy.” — Turner

“This change allows consumers more competitive options and additional coverages,” Turner noted, as NFIP coverage does not include costly provisions such as additional living expenses, loss of business income while repairs are being done, replacement costs for contents or the ability to write limits that are more expansive.

The increased coverage options are likely to benefit people who own valuable homes with expensive contents. “The NFIP is limited to $250,000 for a dwelling, where the private market can write up to $5 million on a Private Flood Insurance policy,” Turner said, adding that going above and beyond what the NFIP offers is a relatively minimal cost in comparison to the potential exposure.

Unlike the United States, Canada does not have a government-administered flood insurance program. Yet amid recent reports that 20 percent of Canadian homes are at high risk for floods, the national government has been debating whether or not to start one. Meanwhile, businesses and homeowners in Canada are showing an increased interest in investing in Flood Insurance.

Concerns for businesses

With a storm like Barry, damages are not confined to flooding—and they are not confined to personal homes and property. “You can have wind damage to the building, to doors and to windows,” said D’Antoni. “In commercial buildings, that can not only cause damage to the building itself, but also to the contents inside.”

“Given the extent to which even a relatively mild hurricane like Barry spreads pollutants, [Environmental Insurance] is a coverage that could be widely useful to businesses.” — Gina Jones, Burns & Wilcox

Commercial Property Insurance can cover this damage, and if, because of that damage, a business cannot open for a period of time, Business Interruption coverage could pay for employee salaries, rent, and make up money lost in sales. In anticipation of the storm last week, nearly all businesses in one Louisiana town closed; also ahead of Barry’s touch-down, restaurants in New Orleans closed down, losing business for 24 hours and in some cases more.

“Anything outside of its natural environment is a pollutant,” said Jones. When a local, state or federal directive or other action is issued to clean up a contaminated site, Environmental Insurance could cover the costs of that cleanup. Given the extent to which even a relatively mild hurricane like Barry spreads pollutants, this is a coverage that could be widely useful to businesses. “Every single business should have an Environmental policy,” Jones said. Environmental Insurance could cover cleanup, bodily injury, property damage, restoration costs and diminution of value—all of which would not be covered by a General Liability policy.

“A storm like this is a good wake-up call.” — Blaise D’Antoni, Burns & Wilcox

As wetter, more frequent storms make their mark, speak with your insurance broker or agent to be sure that you, your belongings, and your business, are protected. “A storm like this is a good wake-up call,” D’Antoni said. “It is just a good time to talk to your broker and make sure you have the right coverages, and make sure you have taken the necessary steps to come through the storm the best way you can.”

As with any coverage need, an insurance broker or agent must be consulted.

This information was provided by Burns & Wilcox, North America’s leading wholesale insurance broker and underwriting manager.

Burns & Wilcox works exclusively with retail insurance brokers and agents to assist clients like you with their specialty insurance needs.

No Comments

Post a Comment

Name

Required

E-Mail

Required (Not Displayed)

Comment

Required

All comments are moderated and stripped of HTML.

Submission Validation

Required

Enter the Validation Code from above.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only.
It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
in your state. By using this blog site you understand that there is no broker client relationship between
you and the blog and website publisher.

Resources

Contact Us

This web site may contain concepts that have legal, accounting and tax implications. It is not intended to provide legal, accounting or tax advice. You may wish to consult a competent attorney, tax advisor, accountant or your own financial advisor. EMC Insurance Agency & Financial Services LLC dba I & E Insurance Agency & Financial Services is an Independent Insurance Agency, a Member of the Trusted Choice , Independent Agents of America and member of the ANE Network of Independent Insurance Agents, contact your own advisors before making any decision.